Truthout - August 5, 2021
Three national banks that partner with Walmart are wholly dependent on overdraft fees extracted from low-income shoppers.
First Convenience Bank, Academy Bank and Woodforest National Bank all made more than 100 percent of their profit in 2020 and 2019 from overdraft fees, according to a study published earlier this year by the Brookings Institution. As the report notes, the firms “had overdraft revenues greater than total net income (meaning they lost money on every other aspect of their business.)”
The research was cited by Sen. Chris Van Hollen (D-Maryland) during an August 3 oversight hearing before the Senate Banking Committee featuring top financial regulators. The acting head of the Office of the Comptroller of the Currency (OCC), Michael Hsu, criticized “excessive fees on overdrafts,” and told Sen. Van Hollen that his agency is “looking very closely” at the issue. ...
Read full report at Truthout